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The lobbying and law firm held a regularly scheduled all-partners meeting Thursday to discuss the state of its business and announced a decision to close the Newark, N.J., office. Patton Boggs lists 26 lawyers working out of that office on its website.

The New Jersey office handled the World Trade Center captive insurance case and had been bringing in a revenue of around $50 million a year before the case settled. Last year, the firm faced an $11.8 million loss from the office.

Patton Boggs managing partner Ed Newberry estimated that about five of the lawyers will remain in New Jersey and roughly half of the remaining 20 lawyers will work out of the firm’s New York City office.

“Those revenues are now gone and so it was a large office that hasn’t really back-filled the work,” Newberry said. “To the extent that we have excess capacity we’ll reduce headcount for those people not fully employed.”

The cost-cutting measure comes after Patton Boggs engaged in two rounds of lay-offs in 2013, letting go 65 lawyers.

The partners also voted to approve the first phase of overhauling its well-known compensation formula for non-equity partners and of counsel. The next phase for equity partners is expected to implemented in May.

Newberry said the firm last year cut some “$27 million in costs and we are projected to have a very profitable 2014 as a result.”

Patton Boggs like much of the legal industry has struggled over the past year as the legal market has contracted and lobbying revenues have stagnated. Patton Boggs also had the largest drop in lobbying revenue among the top lobbying firms, down nearly 15 percent compared with 2012. The firm still led the area firms, reporting $4o.2 million in 2013 lobbying revenue.

Last year the firm unsuccessfully tried to find a merger partner after talks in December with larger Texas-based Locke Lord were called off.

Newberry said Patton Boggs is looking to grow its platform geographically to California, Texas, Asia and London. It also wants to offer a broader corporate practice, intellectual property litigation and other areas.

While the Locke Lord deal fell through, Patton Boggs would still be “amenable” to a merger if the “right partner” were available, according to Newberry.

The firm has also seen a number of lawyers and lobbyists exit the firm recently, including Bob Tompkins, head of the firm’s government contracts group, to Holland & Knight; health care industry partner Laurence Freedman to Mintz Levin; and most recently senior public policy adviser Vince Frillici to Mercury Public Affairs, among others.

Newberry discounted the exits as any broader sign of the firm’s health.

“We’ve lit intentionally a forest fire, we’ve controlled that forest fire,” Newberry said. “While we’ve lost a few people over the last year, who are good friends and good partners, our firm is much stronger today than it’s been in a long time.”